Use of huf corpus

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Querist : Anonymous

Querist : Anonymous (Querist)

02 October 2012 Can Corpus of HUF can be used to buy a commercial property in name of karta's wife?

Pankaj Gupta

Pankaj Gupta (Expert)

02 October 2012 It will be a gift by the huf. And all the gifts made by huf are void ab into. Such property shall be included in the wealth of huf for the purpose of wealth tax. Also the income from such property will be taxable in the hands of huf. however, the karta can give his share in the co parcenary property to his wife.

Querist : Anonymous

Querist : Anonymous (Querist)

07 October 2012 Can Overdraft facility be availed from bank in name of karta's wife on Fixed Deposits of HUF for purchase of property in name of karta's wife? Entire loan will be paid by karta's wife.

Querist : Anonymous

Querist : Anonymous (Querist)

13 November 2012 Waht will be tax treatment if Overdraft facility has been availed from bank in name of karta's wife against Fixed deposits of HUF for purchase of property which she had rented?

Pankaj Gupta

Pankaj Gupta (Expert)

20 November 2012 well...the question you are asking is a disputed issue.
In my opinion, I dont think that keeping of FD as security will give rise to any issues. Because on the date of complete payment of loan, security will be taken back by HUF. Hence it is not a gift by huf.
So I dont think that there will be any tax issues in this transaction.

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